The S&P 500 soared to an all-time high on Thursday following the release of robust quarterly results by chip giant Nvidia, igniting a rally in the broader tech sector.

Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City
Reuters

As of 3 p.m. ET, the broad market index surged by 2%, reaching a new record, while the Nasdaq Composite experienced a notable 2.8% surge. The Dow Jones Industrial Average also saw gains, climbing by 421 points or 1.1%. These increases signaled a turnaround from a three-day losing streak for the major averages.

Nvidia, in particular, stood out with a remarkable nearly 14% surge to an all-time high after reporting a staggering 265% increase in total revenue compared to the previous year. The surge was largely fueled by the company's flourishing artificial intelligence business. Additionally, Nvidia provided a bullish forecast for the current quarter, surpassing already high expectations for significant growth.

The positive momentum extended to other tech giants as well, with Facebook parent company Meta and Amazon seeing gains of over 3% and 2% respectively. Microsoft and Netflix also experienced increases of more than 1%.

The enthusiasm surrounding artificial intelligence (AI) has been a driving force behind Nvidia's remarkable performance over the past year, contributing to gains in other prominent tech companies. Nvidia's stellar quarterly performance is expected to further instill confidence in the tech sector, which has been a key driver of broader market gains.

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